5th May, 2012

Lock in 30-Year Mortgage Rates for Homes in Breckenridge

Fortunately, Breckenridge Colorado home buyers today still have the opportunity to purchase homes in Breckenridge utilizing mortgages with extremely low interest rates.  Most buyers who are searching for homes in Summit County—from ski-in Breckenridge and Keystone real estate to properties in Dillon, Silverthorne, and Frisco—could save several hundred thousand dollars over the life of the real estate loan by locking into a 30-year fixed-rate mortgage.

An inexperienced home buyer may shop for the lowest Breckenridge home prices in a suitable property.  They actually need to know that total interest paid over the life of the mortgage is the most expensive part of the purchase.  Quite a lot of people pay cash for Breckenridge real estate.  Nonetheless, the majority of homes in Breckenridge are purchased using some type of mortgage.

Current Summit County property owners may also benefit likewise, especially anyone utilizing a mortgage that has at ARM.  With today’s lower interest rates, a borrower using a mortgage product within an ARM is paying maybe 3 or 4 percent at these very low interest rates.  Many anticipate or even dread the day when the ARM comes due, dramatically kicking up the interest rate.  Even if the ARM mortgage product is fairly new, a borrower can be caught off guard when the national interest rates begin to mount once again.

Remember that interest rates were in the high teens during the 1980s, although 8 or 9 percent can also be uncomfortable.

Now is the time to refinance and lock into a fixed-rate product at approximately 4 percent for 30-year loan.  Here is an example of the savings on a smaller loan amount as outlined by Bob Keebler in the Summit Daily Newspaper on April 20, 2012.  The example is based on a 30-year fixed-rate mortgage.  Rates are about four percent right now.

A $300,000 mortgage for an owner occupied- or second-home with an APR of 4.028 percent locked into 360 monthly consecutive principal and interest payments of $1432.35 for a buyer with a credit score over 700 with an owner occupied or second home.  The finance charge is $2025.50 and the debt-to-income ratio can be up to 45 percent.

Come on up to see Summit County Colorado real estate for sale to fit your budget and dreams.  For information about buying real estate in our mountain villages, call Barrie Stimson, Breckenridge Realtor® at (970) 390-2560.

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